The Tata Nano was developed as India's "People's Car" to provide an affordable automobile for the masses. Tata Motors aimed to design a small car that could be manufactured for 1 lakh rupees while meeting regulatory standards. The rear-engine rear-wheel drive Nano was developed with a 624cc two-cylinder engine and cost reductions through 85% outsourcing and locating the base plant in Gujarat. While the Nano provided increased mobility, its marketing and distribution through non-traditional channels posed challenges for Tata Motors.